Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
US President Donald Trump called it the largest oil deal in history. Can it impact <a href="https://xpertsstudio.com/which-crypto-is-the-best-to-buy-right-now/” title=”Which Crypto Is the Best to Buy Right Now?”>crypto?
ByJordan Lyanchev
The United States has secured majority control of more than 65 billion barrels of Venezuela’s oil reserves, which could reshape global energy markets, but does it actually matter for bitcoin and crypto?
President Trump announced on Friday that the US had secured majority control through an agreement involving Washington, Venezuela, and private businesses. He called it the “biggest oil deal in world history” and said it would substantially increase America’s effective oil reserves and ultimately bring down fuel prices.
65 Billion Barrels, But There’s a Catch
The analysts at the Kobeissi Letter noted that the US currently has around 46 billion barrels of proven domestic crude reserves. Adding control over another 65 billion would bring the combined figure to over 110 billion, roughly 7% of global proven reserves. In other words, the US-controlled total would be around the same as the UAE’s and ahead of Kuwait’s.
According to some leaked details, the deal covers 17 Venezuelan oilfields, including projects in the re give the US a majority operational position, while American companies are expected to provide much of the capital and expertise needed to increase production
Venezuela has also projected close to $100 billion in private investment tied to the broader agreement. However, here comes the catch. Those barrels are all reserves, not immediate supply.
Venezuela currently produces around 1.2 million barrels per day, a fraction of what its enormous reeteriorating infrastructure, power problems, and other issues. Reuters reported that even the country’s ports are already struggling with current export volumes, with some tankers waiting weeks to load
Lower Oil Good for Bitcoin?
Oil has been one of the biggest inflationary pressures this year as the conflict in the Middle East and disruptions around the Strait of Hormuz have pushed crude prices sharply higher. In general, more expensive oil feeds into fuel, transportation, manufacturing, and ultimately consumer prices.
Source: cryptopotato.com